"when we talk about pricing many people quickly gravitate to like dollar figures that's just a price point that's a dollar figure but when we think about price we think about it as a measure like you k..."

"pay conversation and entrepreneurs and companies need to do this much earlier so that they can understand you know are they on the right track welcome to Lenny's podcast I'm Lenny and my goal here is ..."

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"in the world you literally wrote the book on pricing strategy that everyone seems to read and share and talk about and so I'm really honored to have you on this podcast thanks for the nice ones I'm ex..."

"impact and that's also why we wrote the book so the way I measure impact for monetizing Innovation is literally there's probably uh you know someone reaching out on a daily basis saying hey I read the..."

"you talked about the company Simon Kutcher I'll just add that any smart product leader growth person that I talk to they're always talking about how they've worked with you to figure out their pricing..."

"not just the art and and that's kind of what I've been focusing on you know in the last 15 years and you know also my education in Stanford was in quantitative marketing so many of those let's say the..."

"know commercial perspective simply because entrepreneurs or companies did not do the check earlier on had they done it they could have probably uh you know pivoted the product build things in a differ..."

"situation I mean you can set all the pricing you want it's a human having a human conversation so how do you put checks and balance in some of that and my view was you know pricing should sit in finan..."

"Success it's simply testing and learning everyone in your probably listener based nurse tests and learn we are talking about testing and learning pricing and willingness to pay why wouldn't you do tha..."

"iterating and learning and sort of refining so there's never too early too late I think is most of the companies this is why we wrote monetizing Innovation like I told you 72 percent of Innovations fa..."

"up with an idea you know they said okay it should be launch an SUV and even before a blueprint was drawn they basically went and checked with the market you know is there a need for an SUV where peopl..."

"did they like it would they pay for it Etc and then they would fine-tune every single thing that goes on right so the Innovation process is very different from the classic you know spray and pray buil..."

"um and the CEO said okay let's go and build a product for the buy side and uh that you know people will buy like so the buy side monetization product strategy so in classic fashion all the product fol..."

"product around this like one to give you an example you know one of the features that they were building was called or other the the number one feature that the internal team thought was well you know..."

"but because they actually did this they could prioritize what they were building literally I mean for your product folks the number one lesson and I hope this is the biggest takeaway for your uh audie..."

"product as opposed to like not knowing what drives the willingness to pay and just trying to put everything out there right and and at the worst form often what happens then is this 20 is the easiest ..."

"okay so let's actually talk about how to have these conversations I imagine that's what a lot of people are wondering right now he's like yes I'm convinced I will have these conversations but then you..."

"confronting someone as to like what you should be charging so let me go into like a few methods and and and and I can pass to see if you have any questions so the first one is um you know what we say ..."

"if they say 110 what they're saying is you can be more premium than that and we would still pay for it at least you've gotten some information that is Meaningful at a very basic level right so this is..."

"there it's a no-brainer price no friction Etc the expensive price tends to be the price that is value priced as in you know they don't love you they don't hate you they would pay you but you know that..."

"certain price point then you can you know lower the price and say okay would they actually move their ratings to a four or five so I think these are some simple ways to understand purchase probabiliti..."

"few times you would be able to uh you know prioritize the entire feature set in a relative fashion and truly understand what drives willingness to pay the last method which gets into more advanced met..."

"and different methods are actually applicable at different stages of a product and different stages of a company you know if you're very early stage let's say just an idea just have the conversation I..."

"answer but there's so many methods it's all summarizing chapter four so just one chapter to read in the book that was perfect thank you amazing you mentioned that you want to ask why a lot and that's ..."

"one-on-one as in with the company it could be multiple decision makers increasingly in B2B SAS for instance it's not just one person deciding on a software budget it's like a team so it's usually done..."

"know eye trading or refining things then you can bring this into other pieces of the conversation and and gets more smarter before you launch the product do you have a rule of thumb of how many people..."

"of Ballpark and often in these conversations after a point you start hearing stuff repeatedly I mean if 20 people tell you the idea is horrible it is horrible you can tested all you want right I mean ..."

"we check it probably 10 of them actually have a meaningful segmentation strategy right what I mean by this is most people think of segmentation as a demographic or Persona exercise or you know how do ..."

"for any my product is something else for for the others and the key here is to understand there is a significant let's say a total available Market or size of the market where the needs are similar an..."

"today's episode is brought to you by Miro creating a product especially one that your users can't live without is damn hard but it's made easier by working closely with your colleagues to capture idea..."

"gets actually fascinating so I think that's a great example of understanding differentiation and then sort of uh you know productize to different needs and I think that's that's a good example another..."

"becomes key so the topic that we have been focused with many companies to nowadays is not just doing a static view or segmentation but truly understanding Dynamic segmentation and how to offer product..."

"the way the quick framework to think about packaging bundling you know we call it the leaders fillers and Killers exercise or framework so if you think about the classic let's say bundle you know like..."

"talk a lot about that people think too much about how much to charge and not enough about how to actually charge the pricing model so can you just talk about maybe what that is and why people maybe do..."

"another SAS example that is probably top of mind for me is B2B sas's segment this was before they went uh it to twilio they used to price based on apis so like the number of apis that you actually hav..."

"uh not uh please note that don't mix transferency and fairness with being predictable those are very different things transparency and fairness just means that you charge for the product right for ins..."

"awesome and maybe one more example say marketplaces basically if you're taking a fee in almost every case and it's a question of how much you take and then there's maybe a subscription piece on top of..."

"one is going to get it right so if you are super excited about the product and passionate about every single thing that the product is doing most likely you're talking features and not benefits becaus..."

"someone is interested in so like what it was was what they actually did so if you don't see in a fraction that that could be a marker coming back to your question or it could it could just be that if ..."

"audience taking a maybe SAS example Shopify is one of my favorites in terms of like looking at the plants in terms of their benefit like what do they actually put out all of the plans emphasize benefi..."

"listeners can go maybe it's a takeaway folks should probably look at their website browse through their pages and just look or am I pitching features or am I pitching benefits to the reader correct aw..."

"positioning or framing the product conversation in such a way that appeals to both sides of the brain the you know predictably irrational was a great book from then I really made I mean that made the ..."

"product right I mean so let's just reframing the conversation and it was a 30 plus percent increase in you know mrr and arpu right after they actually did this change no changes in products no changes..."

"to the table so we have talked about many behavioral pricing strategies in the book dedicated an entire chapter to this did you actually share a few of them just like some of these tactics that you fi..."

"today kind of effect I think that that kind of makes sense on a product side if you're what you're building is products and consumables then things like the razor Razer Blade model actually makes a lo..."

"usually say which is in line with not dropping the price is to think about three non-pricing actions that you can do when you know uh when this actually happens like for instance do I give more produc..."

"like trying to do that when the times are good and people are saying oh I actually want fake star I want you know I don't want the usage and things like this you actually just took that as an opportun..."

"fit with this audience is this something anyone can pre-order yet sign up to get notified when it's out I think the pre-order probably is still open in Amazon so I think that's something you can check..."

"would highly encourage you to check Kyle's work I think that's fascinating and I also feel the folks at first round are pretty good at putting some good content on pricing product Etc amazing we will ..."